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7.0. EDSR 07-11-1994
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7.0. EDSR 07-11-1994
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City Government
type
EDSR
date
7/11/1994
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Analysis One - assumes no real estate tax or profit <br /> and a discount rate of 10.5% <br /> YEAR 1 2 3 <br /> III <br /> GROSS SALES $251, 691 $259, 241 $266,792 <br /> (3 lots) (3 lots) (3 lots) <br /> EXPENSES <br /> Improvement Costs 604,700 0 0 <br /> Sales, (5%) 12, 585 12,962 13 , 340 <br /> Acct, Legal, Adv 1, 000 1, 000 1, 000 <br /> Real Estate Tax 0 0 0 <br /> 15% Profit 0 0 0 <br /> TOTAL EXPENSE $618,285 $13,962 $14, 340 <br /> CASH FLOW ($366,594) $245,279 $252,452 <br /> NPV FACTOR .904977 .818984 .741162 <br /> NPV ($331,759) $200,880 $187, 108 <br /> YEAR 4 5 <br /> GROSS SALES $274, 343 $93,965 <br /> • EXPENSES (3 lots) (1 lot) <br /> Improvement Costs 0 0 <br /> Sales, (5%) 13 ,717 4,698 <br /> Acct, Legal, Adv 1, 000 1, 000 <br /> Real Estate Tax 0 0 <br /> 15% Profit 0 0 <br /> TOTAL EXPENSE $14,717 $5, 698 <br /> CASH FLOW $259, 626 $88, 267 <br /> NPV FACTOR . 670735 . 607000 <br /> NPV $174, 140 $53,578 <br /> NPV of the five cash flows is: $283,947 <br /> $283,947/1,481,040 Sq. Ft. = $.19 per Sq. Ft. <br /> • <br /> 3 <br />
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